Set-Top Box Energy Efficiency Agreement Is Saving Consumers Millions

According to a new report, the voluntary energy-efficiency agreement that was made between the pay-TV providers, CE manufacturers, and energy-efficiency advocates saved consumers $168 million and reduced nearly 842,000 metric tons of CO2 per year. Eighty five percent of the set-top boxes sold in 2013 met the EPA's Energy Star 3.0 standards; these boxes use 14 percent less energy than their predecessors.

From the NCTA and CEA A new report released today shows that the voluntary set-top box energy conservation agreement between the pay-TV industry, consumer electronics manufacturers, and energy efficiency advocates has saved American consumers approximately $168 million in energy bills. According to the Voluntary Agreement for Ongoing Improvement to the Energy Efficiency of Set-Top Boxes 2013 Annual Report, the improved energy efficiency of set-top boxes also represents a savings of nearly 842,000 metric tons of carbon dioxide (CO2) per year. This is equivalent to the output of one-half of a large (500MW) power plant.

Eighty-five percent of set-top boxes purchased by pay-TV providers in 2013 met the U.S. Environmental Protection Agency (EPA) ENERGY STAR 3.0 efficiency levels. New set-top boxes use approximately 14 percent less energy than those previously issued by the service providers. Other 2013 milestones include:

• The Voluntary Agreement led to a 4.4 percent reduction in national energy consumption by set-top boxes even as deployed stock increased in 2013.• These energy savings are even larger when compared to national energy use projections without the Voluntary Agreement. Against those projections, the improved energy efficiency of the set-top boxes procured in 2013 saved American consumers almost $350 million in energy bills and saved nearly 1,750,000 metric tons of carbon dioxide (CO2), equivalent to the output of one large (500MW) power plant.• Set-top box purchases indicate early adoption of 2017 goals - 90 percent of purchased set-top boxes must meet a more stringent set of energy efficiency levels called Tier 2. Approximately 47 percent of set-top boxes purchased in 2013 meet the more efficient Tier 2 levels.• The industry now offers new whole-home DVRs, which are able to deliver live and recorded content to multiple TVs in a home, providing additional energy savings as consumers no longer need a DVR on each TV.• Cable operators have deployed software updates enabling "light sleep" for set-top boxes already in homes and new set-top boxes. Telco providers deployed "light sleep" capabilities, and satellite providers have included an "automatic power down" feature in more than 90 percent of set-top boxes purchased and deployed.

"The Voluntary agreement to reduce national energy use of set-top boxes is off to a great start. With these improvements the national energy used to power these devices is now going down,"said Noah Horowitz, Senior Scientist at the Natural Resources Defense Council. "The great news is that the more efficient boxes save consumers money on their electric bill, reduce pollution, and work even better than the old ones used to."

"These collective efforts of the cable, satellite, and telephone industries demonstrate a commitment to delivering innovative video services while at the same time saving energy in our customers' homes," said Michael Powell, President & CEO, NCTA. "A big part of innovation is making sure we are good stewards of the environment, so these providers and device manufacturers will continue to look for new ways to conserve energy in delivering services."

"The Annual Report is an important obligation of the Voluntary Agreement," said Gary Shapiro, president and CEO of CEA. "It provides transparency, public accountability and a progress check on this non-regulatory initiative designed to deliver comprehensive energy and related cost savings for consumers and the country, while also protecting innovation and competition within our industry. The consumer technology industry is proud of the progress we have made to date in partnership with pay-TV providers to increase the energy efficiency of set-top boxes, as our industry continues to reduce our environmental footprint and increase sustainability."

In 2012, the pay-TV industry initiated a Voluntary Agreement that would eventually result in annual electricity savings of $1 billion or more, as the energy efficiency of set-top boxes is increased by up to 45 percent. Agreement signatories include 11 cable, satellite, and telco video companies and all major equipment vendors serving 91.9 million U.S. video subscribers, accounting for 91.3 percent of the total market in 2013. In 2013, leading energy-efficiency advocates joined with the pay-TV industry in an expanded version of the Voluntary Agreement.

One of the requirements of the Voluntary Agreement is the publication of an annual report, which was conducted by D&R International. The Independent Administrator, hired and funded by the Voluntary Agreement Steering Committee following a competitive bidding process, collected data directly from service providers before aggregating and incorporating the data in the report.